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State of California Franchise Tax Board Tax Information Center

State of California Franchise Tax Board Tax Information Center

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so if you get audited by the irs and your audit closes and you end up owing money you get an assessment will you have to report that to the franchise tax board in california the answer is yes and if you don't what happens is the ftb will find out anyways it's just a matter of time it might take them a year or two but the ftb will not have any time limits on when they can assess you so five years down the road if they say hey by the way we just found out you had an audit five years ago they concluded and you owe an extra 100k to the irs or whatever the amount they're going to look at the additional income that was uh assessed right how much additional income they find the franchise tax will carry that over and now you'll owe money to the state of california so the benefit of doing it within six months of closure of the irs audit is you don't lose or waive any potential rights you have to petition or fight that assessment so even if you do lose with the irs you can potentially could get

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